Acacia, Oclaro plunge after U.S. bans sales to China's ZTE
Shares of several optical networking component providers - including Acacia Communications (ACIA), Oclaro (OCLR) and Lumentum (LITE) - are sliding after the U.S. Department of Commerce reportedly banned U.S. companies from selling components to Chinese telecom equipment maker ZTE Corp. (ZTCOY). Loop Capital analyst James Kisner previously has noted that China's ZTE announced it was raising $2.1B to fund the development and deployment of 5G wireless networks, which he read as a positive sign for optical component vendors. Oclaro (OCLR) and Acacia Communications (ACIA) have notable exposure to ZTE, Kisner pointed out, adding that he expected most optical component makers to benefit from 5G deployment in China. In pre-market trading following the news of the ZTE sales ban, Acacia shares have fallen over 18%, Oclaro has dropped 7.5% and Lumentum is down 8%.